Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines Return on Capital as EBIT divided by the total of Property, Plant and Equipment and net working capital. Matthews International Corp's annualized return on capital (Joel Greenblatt) for the quarter that ended in Jun. 2017 was 34.25%.

During the past 13 years, Matthews International Corp's highest Return on Capital (Joel Greenblatt) was 55.61%. The lowest was 18.67%. And the median was 34.38%.

NAS:MATW's ROC (Joel Greenblatt) % is ranked higher than
55% of the 92
Companies
in the Global industry.

( Industry Median: 18.40
vs. NAS:MATW: 25.55
)

Matthews International Corp's 5-Year average Growth Rate of Return on Capital (Joel Greenblatt) was -11.70% per year.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Matthews International Corp Annual Data

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

ROC (Joel Greenblatt) %

30.53

27.04

18.67

22.11

23.23

Matthews International Corp Quarterly Data

Sep12

Dec12

Mar13

Jun13

Sep13

Dec13

Mar14

Jun14

Sep14

Dec14

Mar15

Jun15

Sep15

Dec15

Mar16

Jun16

Sep16

Dec16

Mar17

Jun17

ROC (Joel Greenblatt) %

32.22

31.37

14.97

21.63

34.25

Competitive Comparison

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Note:
The EBIT data used here is four times the quarterly (Jun. 2017) EBIT data.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

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